What is a criminal tax investigation?
A criminal tax investigation is different than an audit. In an audit, the IRS is attempting to
determine if you have correctly reported your tax liability. In a criminal tax investigation,
the government is preparing a case so that the U.S. Attorney can PROSECUTE you and
put you in JAIL. Criminal tax investigations are primarily conducted by the IRS Criminal
Investigation Division (CID). However, many cases also involve criminal investigators
from the FBI, Postal Service, DEA, BATF and state and local criminal enforcement
agencies.
Criminal Investigation Division (CID) agents use the title "Special Agent" and they have
badges that look like this:
Some common tax related crimes include:
- Tax Evasion
- Failure to Collect Taxes
- Failure to Pay Over Taxes Collected to the IRS
- Failure to File a Return
- Failure to Supply Information to the IRS
- Failure to Pay Tax Owed
- False Returns
- Submitting False Documents
- Attempts to Interfere with Administration of Internal Revenue Laws
- False Statements
- False Claims
- Perjury
- Mail Fraud
- Money Laundering
- Conspiracy to Commit Any of the Above
- Aiding and Abetting the Commission of Any of the Above
When to worry about a criminal tax investigation?
Just because you don't think that you have committed any crime does not mean that the
IRS will not institute a criminal investigation. Many people charged with tax crimes don't
believe they have done anything wrong. Furthermore, many people charged with tax
crimes are found to be not guilty. Therefore, even if you believe that you have done
nothing wrong, you need to be on the look-out for signs of a criminal investigation. You
should be concerned about the possibility of a criminal investigation if:
- You or anyone you know are visited by a Special Agent, FBI Agent, or other
law enforcement officer. If you or anyone you know are contacted by a Special
Agent, FBI Agent or other law enforcement officer regarding anything to do with your
tax return or finances, you need to worry about a criminal investigation. These
individuals are likely investigating a tax crime. No matter what they say, they are
likely NOT part of any routine audit.
- Returns are being audited that you know to be false. If you are under audit
and you know that the information on that return is false or fraudulent, you need to
worry about a criminal investigation. Auditors are trained to refer cases to CID
when they discover false or fraudulent information on a return.
- You have not been filing returns. If you have not been filing your returns you
need to worry. This is true even if you believe that you have paid the all the tax you
owe through withholding by your employer or otherwise. Willful failure to file your
return is a criminal offense.
- A grand jury subpoena is served on your accountant, bank, employer,
employee, customers, or any other person seeking information related to
you. A grand jury’s sole purpose is to determine whether sufficient evidence exists
to indict a someone for a crime. If a grand jury is seeking information about you,
your tax return, or your financial affairs, you are likely a target of a criminal
investigation.
- You have had trouble with state tax authorities. Often the IRS and state tax
authorities have information sharing agreements. Therefore, if you have trouble
with state tax authorities, it is likely that the IRS is aware of the situation and will
likely look into the matter.
- A CID summons is served on your accountant, bank, employer, employee,
customers, or any other person seeking information related to you. The CID’
s sole purpose is to gather evidence related to a crime. If the CID is seeking
information about you, your tax return, or your financial affairs, you are likely a
target of a criminal investigation.
- You have any indication of a non-tax criminal investigation that involves
money or property. Many criminal cases begin as investigations into some other
criminal matter, especially cases that involve money, drugs, or property. Since
taxpayers owe taxes on all their income, both legal and illegal, tax cases often
evolve from these other types of criminal investigations. In fact, often it is easier to
prove the tax case than the underlying crime.
How do criminal investigations get started?
- Informants. The IRS uses both paid and unpaid informants to develop many tax
cases. These informants are often someone angry at the taxpayer, such as former
spouses, former employees, neighbors, etc. In fact, the IRS has a specific form
(Form 211) that people can file to provide the IRS information about another
person. If this is original information previously unknown to the IRS and they collect
taxes, the informant is entitled to a reward based on a portion of the taxes the IRS
collects.
- Revenue Agents. Revenue agents conduct audits. They are trained to turn over
cases to CID when they think they have discovered false, fraudulent or criminal
activity.
- State Tax Authorities. State tax authorities and the IRS often have information
sharing agreements and state tax authorities often provide CID information of
suspected taxpayer criminal conduct.
- Other Law Enforcement Agencies. Many other federal and state law
enforcement agencies provide information to CID about suspected criminal activity.
Likewise, CID often works joint cases with other agencies.
What should you do if you may be a target of a
criminal investigation?
- Remain Silent. You have the Constitutional Right to remain silent. You do not
have to answer ANY questions without your attorney present, so SHUT YOUR
MOUTH until you have your lawyer present. What you say can and will be used
against you.
Obviously you should not talk to Special Agents, FBI Agent, other law enforcement
personnel or IRS personnel.
Just as importantly, you should not discuss the situation with your accountant, tax
preparer, or anyone else. These people can be subpoenaed and forced to
disclose what you have told them. Accountants and tax preparers CANNOT have
confidential or privileged communications with you regarding a criminal matter.
They have a limited privilege that provides confidentiality regarding tax matters but
NOT legal or criminal matters. The only way you can have confidential
communications regarding a criminal matter with your accountant is if your criminal
defense attorney hires your accountant as a part of the defense team and therefore
the attorney’s privilege is extended to your accountant.
- Get Help. Criminal investigations should not be taken lightly. Hire a qualified
attorney IMMEDIATELY upon suspicion that you are under criminal investigation.
Why Hire Us?
We provide aggressive TRIAL DEFENSE services for persons serious about their
freedom.
If you find yourself facing an IRS criminal investigation or charged with a tax crime, you
need an attorney with specialized skills. This attorney needs to be competent in both tax
issues and criminal issues. A tax lawyer won't do and a criminal lawyer won't do. You
need a lawyer that has experience in BOTH criminal trials and tax law. You need David
Jacquot.
Our judicial system recognizes your right to defend your Freedom. In fact our system
views the defense of your Freedom so important that you have the "right to an attorney."
We believe that you have the "right to a good attorney." You deserve a well educated,
experienced attorney that is committed to providing you the "Best Shot" at defending
your Freedom.
We firmly believe that whenever freedom is challenged, it should be defended. David
Jacquot has spent his adult life defending freedom. From combat in the sands of Iraq, to
the courtrooms of our country, he is dedicated to the aggressive defense of our
freedoms. Although no guarantees can be made about the outcome of any case, we can
guarantee that we will be relentless in your defense.
If you want an aggressive trial lawyer that is dedicated to relentlessly defending
your freedom, look no further.
If we can be of service, call 1-866-4-TAX-HERO
day or night.
Click Here to See Why You Should Hire David Jacquot
PRIVACY POLICY, AND THE COPYRIGHT & TRADEMARK NOTICE THAT IS INCORPORATED BY REFERENCE HEREIN. Our Law Firm provides
aggressive representation NATIONWIDE to individuals and businesses with IRS problems. This includes IRS audits and appeals , IRS collections and offer
in compromise, tax litigation and criminal tax cases. Viewing this web site does not commit us to provide services and we expressly reserve the right to
refuse to provide service. If you do not agree to these policies, please do not use this site.
